Erdman v. Yolles

Plaintiff and the three individual defendants are all hairdressers who formed the corporation, Sol and Bob, Inc., each owning a 25 percent interest in the corporation. In October, 1970, plaintiff terminated his employment with the corporation but retained his 25 percent interest therein. Subsequent to his departure, corporate investments which had been made during plaintiff’s active service with the corporation were sold by defendants and, although profits were declining, defendants thereupon granted themselves pay increases and bonuses which they approved retroactively over objection of…